Influence of Investment Decisions and Financial Decisions on
Company Value based MBVE as a Moderating Variable
To Mining Companies Listed in IDX Year 2008-2014
Riska Febriana Pratiwi, Ikaputera Waspada and Budi Supriatono Purnomo
Universitas Pendidikan Indonesia, Setiabudhi 229 street, Bandung, Indonesia
Keywords: Investment decisions, financing decisions, the company's value and Market to book value of equity
(MBVE).
Abstract: Stock prices volatile moves in the stock market is a matter that needs to be considered by a financial
manager, because it is a must-know information for investors, especially investors who invest in the mining
sector. That investors make a profit then he should be able to predict the movement of stock indices and see
opportunities in investing. Based on the objectives and the formulation of this research. Subjects of this
study consisted of 23 (twenty three) mining company in Indonesia which has the financial statements Year
2011-2014. Where that becomes the independent variable in research that investment decisions and funding
decisions, while the dependent variable is the value of the company and Market to Book Value of Equity
(MBVE) as moderation. Data analysis technique used is multiple linear regression with the help of
computer software tools eviews 8. influence test results obtained in the research for the investment decisions
and funding decisions on the value of the company based MBVE as a moderating variable is not significant
either before (0.16 %) or no moderation MBVE (1.13%).
1 INTRODUCTION
The weakening of the economy, especially the world
oil price which resulted in global financial
instability, is a threat to the capital market that
supports the development of the economy & nbsp;
world. Particularly sectoral industry is the mining
sector. This is seen in the movement of Composite
Stock Price Index (CSPI) from year to year for
approximately seven (7) years.
Figure 1: Value of Sectoral Mining Stock Price Listed in
BEI Year 2011-2014.
Mining industry has decreased in the year 2011
and continues to decline until the year 2016 now to
reach 10.10%. There are 41 companies incorporated
in the mining industry sector. Where all companies
compete to obtain the best performance that
implicates in the expected results. Investment
decision is one of the financial decisions that can be
used to increase the investment opportunity set
(IOS) based on price (MBVE). The higher the ratio
of MBVE ratio the higher the value of the company.
Based on the description of the phenomenon and the
existing data, the authors are interested to conduct
research with the title "Impact of Decision and
Investment, Decision Funding Value Company
Based on MBVE as Moderating (Study on
Companies in Mining Sector Listing in Indonesia
Stock Exchange Year 2011-2014). This research is
intended to reveal information on how big the
influence of investment decisions, funding decisions
on the value of companies moderated by MBVE.
Pratiwi, R., Waspada, I. and Purnomo, B.
Influence of Investment Decisions and Financial Decisions on Company Value based MBVE as a Moderating Variable - To Mining Companies Listed in IDX Year 2008-2014.
In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship (ICEEE 2017), pages 593-596
ISBN: 978-989-758-308-7
Copyright © 2017 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
593

2 LITERATURE REVIEW
Grand theory of this research is financial
management is to maximize shareholder wealth
which means maximize stock value, it is expressed
by Brigham & amp; Houston (2013: 4) .. According
to Irham fahmi (2014: 19) there are several theories
that can be used in the development of financial
management science, one of which is the Signal
Theory (Signaling Theory). Middle theory used in
this penenlitian is a financial decision. Furthermore,
applied theory used in this research is company
value. The results of his research conclude that the
IOS which is proxied by MBVE has a significant
effect on firm value. & Nbsp; . Based on the results
of Hidayat's research (2010: 467) investment
decisions can be seen by calculating the difference
in assets last year with the current year compared to
assets of the current year. The applied equations are
as follows:
Total assets growth = fixed assets
t
- fixed assets
t-1
/
fixed assets
t
The result of using the formula only to reflect the
change in the amount of the company's fixed assets
from the previous year. Where in its calculations
only include the company's capital in fixed assets
excluding securities or securities. According to
Gaver and Gaver (1993) IOS is the value of a
company whose size depends on future
management-defined expenditures, which are
currently investment choices expected to generate
substantial returns. IOS is unobservable, requiring a
proxy that can be associated with other variables
within the company.
3 METHODS
The design of causality in this study aims to
determine the effect of investment decisions and
funding decisions on the value of companies based
on MBVE as a moderating variable in the mining
sector companies listed on the Stock Exchange in
2011-2014. Operational variables in this study has
three variables to be studied, namely as follows;
Variable free investment decision and funding
decision. Dependent variable (Y) Company Value.
Moderating Variables (X3) Market to book value of
equity (MBVE) Population in this study is a mining
sector companies listed on the BEI in 2011-2014 as
many as 41 companies. The calculation of the
number of samples taken from the number of
population is calculated through the criteria of
research samples are as many as 23 companies.
4 RESULTS AND DISCUSSION
Based on research on the influence of investment
decision and funding decision to firm value based on
MBVE as moderating variable has been obtained the
theoretical findings: The influence of investment
decisions Theories and concepts are in line with the
theory (Fama and French, 1998) stating that
company value is determined by investment
decisions. Because the value of the company is
determined by the investment decision. So it can be
interpreted that the importance of investment
decisions, to achieve corporate goals, namely
maximizing shareholder wealth that can be
generated from corporate investment activities.
Investment decisions concerning the decision of the
allocation of funds either funding from within the
company or vice versa that funds from outside the
company. The influence of funding decisions The
funding decision theory used in this study refers to
thinking According to Husnan & amp; Pudjiastuti
(2012: 260) funding decision is about the decision
about how much debt the company uses, in what
form the debt and the capital it self will be with
drawn, and when the company will get the funds.
The influence of company value The theory of
corporate value in this study refers According to
Husnan and Pudjiastuti (2012: 6), the value of the
company is the price that is willing to be paid by the
prospective buyer (Investor) shares of the company
at the time the shares are sold. This ratio is
calculated by the equation by dividing the market
price per share by the book value per share. The
equations are as follows;
PBV = (Market Price Per Share)/(Book Value Per
Share)
The effect of Market to book value of equity
(MBVE) The MBVE theory in this study refers to
opinion (Yovani Gunawan, 2015: 7) states that the
ratio of market value of equity to book value
(MBVE) can reflect the existence of IOS for a
company.
5 CONCLUSIONS
Based on the results of research that has been
implemented based on can be concluded as follows:
The influence of investment decisions on the value
ICEEE 2017 - 2nd International Conference on Economic Education and Entrepreneurship
594

of the company in the mining sector is the increase
of one value of the investment decision will result in
one for the value of the company. Which has the
highest average value of investment decisions and
the value of the company that is in Year 2014.
Funding decisions on the value of companies in the
mining sector listed on the Stock Exchange Year
2011-2014 in the can that has the biggest decree
decision is in 2012. But the value of the company at
that time was in a weak position. Market to book
value of equity (MBVE) to the value of companies
in the branches listed on the Stock Exchange in
2011-2014 which has the largest MBVE results that
exist in 2011 which means that the increase in the
value of MBVE does not affect the value of a
company.
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